We would like to express our sincere gratit6ude to our shareholders and investors for the exceptional support.

During the fiscal year ended March 2026, we achieved steady progress across multiple business domains while continuing investments for growth. In our next-generation edge AI semiconductor “Di1” business, evaluations and adoption considerations by domestic and international customers in application markets such as surveillance cameras and drones have advanced. We are now looking toward a transition to mass production and medium- to long-term revenue expansion. In the rapidly growing Indian market, we have formed strategic partnerships with leading companies in the security and drone sectors using Di1, positioning us to capture the country’s substantial demand for social infrastructure and defense applications. In the robotics and safety field, we are pursuing a potential future transition from proof-of-concept (PoC) to mass production of object detection systems in the semiconductor manufacturing equipment sector. In addition, our FA business, launched in April 2025, has made a strong start, centered on the provision of AMR units and related components, and is expected to develop into a new pillar of revenue.

For the fiscal year, net sales were ¥2,432 million, down 21.0% year on year, and operating loss was ¥311 million, mainly due to a temporary slowdown in RS1 shipments resulting from a lower approval rate in the Security Electronics and Communications Technology Association’s tests for pachislot machines. At the same time, our strategic investments, including ¥301 million in Di1 development expenses, are essential upfront investments to build our future earnings base, and their outcomes are steadily taking shape.

Guided by our Purpose, “Making the Image Intelligent,” we will maintain a stable earnings foundation in the amusement field while strongly advancing medium-term revenue growth and corporate value enhancement through our growth engines: the edge AI semiconductor business and the robotics and safety business, including the FA business. Through these efforts, we will evolve into an “Edge Intelligence Platform Company” for the Physical AI era.

We would appreciate your continued support.